WHY SCRIPT CLEARANCE?
If you intend to release your film to be viewed by an audience, you should have a script clearance report researched at the pre-production stage, before you shoot the script. Why?
Your Film Needs a Distributor
Because unless you have a distribution deal already in place, you will need to find a distributor to release your finished film. As the distributor didn't make your film, they will want some kind of guarantee that it doesn't contain any kind of copyright infringement, defamation of character, or other legal problems that would result in them being sued.
The Distributor Wants E&O Insurance
Specifically, the distributor wants you, as the filmmaker, to provide an insurance policy to protect them. This policy is issued by an Errors and Omissions (E&O) insurer.
The E&O Insurer Wants a Script Clearance Report
The E&O insurer, who is primarily in the business of avoiding risk, wants an assurance that they will not have to pay off on the insurance policy due to a lawsuit. This is where the Script Clearance Report comes in.
A professional script clearance report such as the IndieClear Report, reviewed by your production attorney, meets the E&O insurer's requirements for issuing a policy on your film.